If you don't make mistakes, you're not working on hard enough problems. And that's a big mistake. F. Wikzek
Mistakes are inevitble in life. No matter which stream we are pursueing we ought to make some mistakes. So do traders. Mitakes in trading brings rahter bitter consequences because it cost our deary money. Hard earned or borrowed. Novice trader are prone to such mistakes. Im trying to sort out those mistakes and starting a series on such mistakes. Present one is the first in this series.
1. Trade Without Trading Plan : People often enters into this market with big dreams but before startging
they dont make any plan. They are not sure of their risk appetite and dont define even their objective thus their trades are marred by indiscipline. Trading withough discipline has only one destination- disaster. Trade witout objective makes them clueless about where they are going. Obviously they are not prepared, not prepared to assess their profit or bear the losses. Trade without target and stoploss will eventually go haywire. In other words we must know why we are entering into this trade? We must have solid reasoning behind making that trade? On a protective measure we must know on which condition we have to close this position? These are very simple and proven steps that can dramaticaly change your success ration. Do have a trade plan before you trade.
Mistakes are inevitble in life. No matter which stream we are pursueing we ought to make some mistakes. So do traders. Mitakes in trading brings rahter bitter consequences because it cost our deary money. Hard earned or borrowed. Novice trader are prone to such mistakes. Im trying to sort out those mistakes and starting a series on such mistakes. Present one is the first in this series.
1. Trade Without Trading Plan : People often enters into this market with big dreams but before startging
they dont make any plan. They are not sure of their risk appetite and dont define even their objective thus their trades are marred by indiscipline. Trading withough discipline has only one destination- disaster. Trade witout objective makes them clueless about where they are going. Obviously they are not prepared, not prepared to assess their profit or bear the losses. Trade without target and stoploss will eventually go haywire. In other words we must know why we are entering into this trade? We must have solid reasoning behind making that trade? On a protective measure we must know on which condition we have to close this position? These are very simple and proven steps that can dramaticaly change your success ration. Do have a trade plan before you trade.
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